Korea SME federation, IBK Bank to widen Mutual Aid Fund access
In short
The Korea Federation of SMEs said on Oct 6 that it and IBK Industrial Bank will jointly promote a project to expand use of the SME Mutual Aid Fund, publicising it through the bank's nationwide branches and its IBK BOX mobile app. Through the end of November, customers who sign up online using QR codes on tablets and leaflets at branches will receive Naver Pay gift certificates. Yonhap reported that fund loans stood at 644.2 billion won at end-September, up 12% from a year earlier, with 3,481 new subscribing companies, up 37%.
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The Korea Federation of SMEs said on Oct 6 that it and IBK Industrial Bank will jointly promote a project to activate the Small and Medium Enterprise Mutual Aid Fund, aimed at supporting the management stability of smaller companies and small business owners. A Newsis headline described the two sides as having reached an agreement. [ 1 , 2 , 3 , 4 ]
Under the cooperation, IBK will introduce the fund through its nationwide branches and the IBK BOX mobile app, online and offline channels that the federation said would widen the points at which SMEs can learn about the product. Through the end of November, customers who sign up online using QR codes on tablets and leaflets placed at branches will receive Naver Pay gift certificates, according to Asia Economy and Yonhap. [ 1 , 2 , 3 ]
Yonhap described the fund as a savings-type loan mutual-aid system exclusive to small and medium enterprises, in which members can take out unsecured, uncollateralized loans of up to three times the balance of their paid-in contributions. At the end of last month, fund loans totaled 644.2 billion won, up 12% from the same period a year earlier, and 3,481 companies had newly subscribed, up 37% year on year, the same report said. [ 3 ]
Lee Chang-ho, head of the federation's mutual aid business unit, said the cooperation with IBK provides an opportunity to inform more SMEs and small business owners about the fund. He added that the federation will continue working with various institutions to improve access so that smaller companies can prepare for crises and receive practical financial support. [ 2 , 3 ]
The documents do not say how many new subscribers the campaign is expected to bring in, what it costs, or what exact form the cooperation takes. Newsis described the move as an agreement, while Chosun Ilbo, Asia Economy and Yonhap described it as a joint project being promoted by the two organizations. [ 1 , 2 , 3 , 4 ]
Why it matters
The tie-up places a savings-type loan product in front of customers at one of South Korea's main SME lenders, widening the channel through which smaller companies and sole traders can be reached. The federation's figures show the fund is already growing faster than a year earlier, and the bank's branch network and app could extend that reach. The documents do not say how many new sign-ups the campaign is expected to generate or what it costs.
Key facts
- The Korea Federation of SMEs said on Oct 6 it is jointly promoting a project with IBK Industrial Bank to activate the SME Mutual Aid Fund for smaller companies and small business owners. [ 1 , 2 , 3 , 4 ]
- IBK will introduce the fund through its nationwide branches and the IBK BOX mobile app. [ 1 , 2 , 3 ]
- Until the end of November, customers who sign up online via QR codes on tablets and leaflets at branches will receive Naver Pay gift certificates. [ 2 , 3 ]
- The fund is a savings-type loan mutual-aid system for SMEs that allows unsecured, uncollateralized loans of up to three times the paid-in contribution balance. [ 3 ]
- At end-September, fund loans totaled 644.2 billion won, up 12% from a year earlier, and new subscribing companies numbered 3,481, up 37%. [ 3 ]
- Lee Chang-ho, head of the federation's mutual aid business unit, said the cooperation is a chance to inform more SMEs and small business owners about the fund. [ 2 , 3 ]
Confirmed by several sources
- The Korea Federation of SMEs said it is jointly promoting a project with IBK Industrial Bank to activate the SME Mutual Aid Fund. [ 1 , 2 , 3 , 4 ]
- IBK will publicise the fund through its nationwide branches and the IBK BOX mobile app. [ 1 , 2 , 3 ]
- Customers who sign up online via QR codes on branch tablets and leaflets will receive Naver Pay gift certificates through the end of November. [ 2 , 3 ]
- Lee Chang-ho of the Korea Federation of SMEs said the cooperation gives a chance to inform more SMEs and small business owners about the fund. [ 2 , 3 ]
Still unclear
- Whether the two organizations signed a formal agreement or are running a joint project. Newsis framed the news as an agreement in its headline, while Chosun Ilbo, Asia Economy and Yonhap described it as a collaboration project being promoted by the two sides; no document states that a signing took place or sets out terms.
- How many new subscribers the campaign is expected to attract, and what it costs. No document gives a target, forecast or budget for the cooperation.
What local media are saying
Timeline, local time
- Chosun Ilbo reports that the Korea Federation of SMEs and IBK Industrial Bank will push a collaboration project to activate the Mutual Aid Fund. [ 1 ]
- Asia Economy reports the collaboration, the channels it will use and the Naver Pay gift-certificate event running to the end of November. [ 2 ]
- Yonhap reports fund details: unsecured loans of up to three times the paid-in balance, 644.2 billion won of loans at end-September (up 12% year on year) and 3,481 new subscribing companies (up 37%). [ 3 ]
- Newsis reports the two sides' agreement. [ 4 ]